chapter 1

Question 1

brokerage

Answer 1

real estate business that pertains to overseeing the needs of the parties and completing a transaction.
-brokerage transaction may or may not involve agency relationships

Question 2

appraisal

Answer 2

value of real property.

Question 3

mortgage lending

Answer 3

providing money to individuals or corporations for the conditional transfer or pledge of real estate as security for the payment of a debt.

Question 4

property management

Answer 4

includes management of residential and commercial properties on behalf of the investor owner of the property. Property managers are generally responsible for the day to day operations of the property, maintenance, and tenant relations.

Question 5

apartment locator

Answer 5

firm specializes in locating units for tenants in multifamily complexes.
-generally pays for fees to apartment locator for referring tenants to them.

Question 6

home inspection

Answer 6

Texas Real Estate Commission (TREC) must complete a series of course and pass the state exam

Question 7

real estate development

Answer 7

development of land into residential subdivisions, retail centers, and other commercial uses

Question 8

petroleum landmen

Answer 8

individuals with a real estate background who are employed oil and gas companies

Question 9

Institute of Real Estate management (IREM)

Answer 9

international community of real estate managers dedicated to ethical business practices, maximizing the value of investment real estate and promoting superior management through education and information sharing

Question 10

CCIM Institute

Answer 10

commercial real estate practitioners with an opportunity to further their business practices through education and networking opportunities.

Question 11

Society of Industrial and Office Realtors (SIOR)

Answer 11

SIOR professionalisms affiliate of National Association of Realtors

Question 12

International Council of Shopping Centers

Answer 12

advance shopping center industry and to promote its role in the commercial distribution of consumer goods and service

Question 13

physical characteristics of land

Answer 13

(3)
- indestructibility or durability-forces cannot destroy land.
- immobility-land cannot be moved
- nonhomogeneity- no two parcels of land are the same

Question 14

economic characteristics of land

Answer 14

(4)

• scarcity-supply and demand. Scarcity will increase the value of lots.
• modification-value is affected by man-made changes to the land
• fixity- fact that land and additions to the land such as buildings take long periods to pay from themselves.
• situs- location of the property or land from an economic not a geographic viewpoint.

Question 15

Texas Real Estate License Act (TRELA)

Answer 15

• task of interpreting and enforcing the License Act falls upon the Texas Real Estate Commission (TREC)
• TREC publishes the Rules of the Texas Real Estate Commission

Question 16

Texas Real Estate Commission (TREC)

Answer 16

9 member commission primary purpose is to carry out the provisions of the License Act.

• governor appoints commission members who are then approved by the senate.
• must have been brokers for 5 yrs.
• 3 remaining members are public members who cannot be regulated by the Commission
• public members cannot be employed by organizations that are regulated by the Commission

Question 17

TREC powers

Answer 17

-issue sales agent license and broker
-enact rules and regulations with he full force and effect of the law and advise as to these rules and laws
-suspend or revoke license of those who violate the License Act
-place a license holder on probation
-require additional education
subpoena books, records and witnesses, and if a license holder fails to respond to the subpoena, file suit with the Attorney General
-file an action against a license holder on its own motion
-assess administrative penalties of up to 5,000 per day against offending licensed and unlicensed individuals
-promulgate forms which are mandatory for license holders